The global market for DSL broadband services will likely surpass 664 million subscriptions by the year 2018.
A new report from Global Industry Analysts cites some major factors driving the growth in the market, including increasing demand for connectivity, lower relative cost of DSL technology, increasing demand for Internet connectivity from emerging markets, and declining costs of components. Factors such as standardization for improved vendor interoperability and increasing government support for enhancing broadband penetration for economic development are also fuelling growth in the market.
Among all of the broadband technologies available, DSL still maintains the majority of the market, followed by fiber broadband and cable. The global market for DSL broadband is propelled by the constantly increasing demand for communication services, the report says.
While home networking became essential with the huge number of people purchasing laptops, PCs, and notebooks, the increasing popularity of IPTV and online gaming is further driving the demand for high-speed broadband.
Nevertheless, after years of dominating the market, DSL technology is beginning to lose its grip on the broadband market. Since its debut in the mass market, DSL began failing to grab most of the fixed broadband lines being added in the market over the recent years. Given the maturing status of the technology, the global market has been witnessing a decline in net DSL line additions.
Due to market saturation in majority of the regions, the growth of the DSL broadband sector is expected to slow down. While net broadband subscriber additions are slowly declining in certain mature markets such as Finland, Denmark and the Netherlands, rapid increase is visible in the number of subscriptions in the emerging markets, such as Brazil, Russia, China and India.
There is an increasing range of capacity-demanding services being rolled out into the market, and the number of small businesses and residential subscribers for broadband access – primarily DSL services – is witnessing growth.